TIAA-CREF can be mentally and developmentally disabled

[JohnEyles]

I annuitized my TIAA-CREF retirement account recently and was repeatedly
assured that I could change the allocations (to various investment classes)
even after the annuitization was done. So I call the other day and say
"please put 15% in large-cap value, 15% in inflation-linked bond, blah,
blah,blah". Today they call back and say "we can't do that, we can't
allocate by percentages, you can only move fron one account to another".
Apparently they don't have the wherewithal to compute what must be
moved to end up with my desired allocation. This wouldn't be so bad,
except it's not possible to even see what my present allocations are on
their website !!! (It's possible to see one's un-annuitized assets, but not
after it's been annuitized). They have to read them out to you on the
phone - that's right, so I can then enter them into a spreadsheet and
figure out what to move where in order to get my desired percentage.

It's worse than that, because what they give you is the number of
"accumulation units", each of which as a certain payout. So things
are allocated by what they pay out, not what their principal value is.
Question: does it make sense to allocate payout with the same
percentages one normally would allocate accumulation ?

Ok, just wanted to vent a little, and to ask for confirmation that yes,
it IS the year 2007, because I was starting to wonder. Also wondering
if maybe I'm being incorrect info, because I can't quite believe it's THIS
retarded ... Thanks.

 

[grumpy]

Rusty,

I don't know anything about TIAA-CRFE but I am puzzled by the concept of reallocating once you have annuitized. As I understand annuitizing, you give up control of the underlying investment principal in return for a fixed monthly payment for life (or some other option such as a certain # of payments). I have never heard of an arrangement under which you can receive an annuity payment but still control the investment allocation. I learn something new every day.

Grumpy

 

[Rich_by_the_Bay]

I don't know anything about TIAA-CRFE but I am puzzled by the concept of reallocating once you have annuitized. As I understand annuitizing, you give up control of the underlying investment principal in return for a fixed monthly payment for life (or some other option such as a certain # of payments). I have never heard of an arrangement under which you can receive an annuity payment but still control the investment allocation. I learn something new every day.

I'm guessing he has a variable annuity - those let you pick and choose, I believe.

 

[ats5g]

RustyShackleford,

Having dealt w/ the TC people over the phone before, I can feel your frustration. Have you thought about actually meeting w/ a person from TC at your school, or in the Chapel Hill area. You can schedule a meeting in the next week or two through TC's website (or over the phone too )

I know some people who visit Morningstar's TIAA-CREF Forum have annuitized various TC retirement accounts together. One poster, "uphaus", a retired Michigan State English prof, annuitized TIAA, Real Estate, and inflation linked bond together. You could try to see if any of them have reallocated any of it.

- Alec

 

[JohnEyles]

Rusty,

I don't know anything about TIAA-CRFE but I am puzzled by the concept of reallocating once you have annuitized. As I understand annuitizing, you give up control of the underlying investment principal in return for a fixed monthly payment for life ...

Thanks for all the ideas, folks. Yes (as one person said), it's a variable annuity and
thus the payments depend on the performance of the underlying investments and
thus it's important to allocate them in some sensible fashion. I suppose one might ask
why I didn't have them allocated in some sensible fashion BEFORE I annuitized, but
then there's always the issue of rebalancing ...

 

[FinanceDude]

Don't get me started on TIAA--------IMHO......they SUCK!!!

 

[JohnEyles]

Don't get me started on TIAA--------IMHO......they SUCK!!!

Can you be a bit more specific ?

 

[FinanceDude]

Can you be a bit more specific ?

Their funds are fine, their low expenses are fine...........their customer service, and/or if you DARE try to move funds out of there for any reason? Bad.........

Am still fighting with them on my sister's 403B account...........can't get anyone there to answer my questions........and waiting on hold for 20 minutes every time I call is getting old...........

 

[JohnEyles]

Their funds are fine, their low expenses are fine...........their customer service, and/or if you DARE try to move funds out of there for any reason? Bad.........

Damn. The rates on the Vanguard/AIG SPIA have been creeping up to where
I'll get 4.4% WR with COLA (CPI capped at 10%) so I'm gonna jump and move a
TC after-tax annuity there. (It's only 7% of my egg). To lock in the quote,
paperwork has to be there in 7days ... but, they allow 90 days for the money to
arrive, so hopefully even that will be ok with TC's glacial pace.

 

[ats5g]

Rusty,

Let us know how the reallocation of the variable annuities go. I've got some family members that are probably going to consider annuitizing w/ TC in the next couple of years.

Thanks,
- Alec